Germany predicts gas prices will rise due to Middle East conflict

Berlin - The head of Germany’s Federal Network Agency, Klaus Mueller, stated that gas prices in the country will rise due to the conflict occurring in the Middle East. “The consequences of the conflict over Iran are felt by everyone who has to buy gas on the exchange,” Mueller said in an interview with the RND media group. He noted that most households in Germany currently have guarantees that their gas prices will not change for at least 12 months. “However, if new contracts are agreed upon, prices could rise,” Mueller said. Nevertheless, Mueller estimated that prices will not rise as quickly as after the conflict in Ukraine began in 2022. On 28 February, the United States and Israel began attacking targets in Iran, causing damage and civilian casualties. Iran then carried out retaliatory strikes in Israeli territory as well as on US military facilities in the Middle East. The escalating conflict in the Middle East has caused a de facto blockade of the Strait of Hormuz, which is the main route for oil and liquefied natural gas supplies from the Persian Gulf to global markets.